OK by popular request we will start a string on Deal Done... Let us know IN BRIEF, what your most recent or most interesting deal was.. I'll start with a post...

Located a Distressed Seller, Pre-Foreclosure with Sale date set for 3 business days and a weekend away.

3 Bedroom 2 Bath 1516HAVC 2020 sf total
All Brick Built 1983, nice location

Pay Off $81,250 + Nominal Closing Cost

Repair requirements
Roof $3,200
Interior drywall $3,000
Interior paint $1,200
Flooring $1,400
Ext Paint $750
EXt landscape $1,200
Misc $1,000
TOTAL REPAIR Cost = $10,350

ARV estimated to be between $128k and $132k conventional sale or $136k to $138k Lease Option

Friday took deed on Sub 2 with intent of full Cash payoff due to short lead and opportunity.

Closed on Tuesday and wired payoff where Court Sale was scheduled for the AM of Wed.

Now half way through repairs and no surprises.

Should Net around $30,000 in 3 to 4 weeks

next....

Nice little deal Reality...

I have got one for you... I recently had a looloo of a deal fall through... I was working on a Golf Course purchase with one of my buyers... He was getting a pretty good deal on a Golf Course in North Carolina with some Development lots with it thrown in... Well he was bringing in approx. $1.5 million in cash (private investor) and needed the seller to take a $500,000.00 note (normally most golf courses are purchsed with a whole lot more owner financing than that...)... The seller got greedy and wanted to know the what for's and why's of the Buyer's financing... which to a reasonable point would have been ok.. But the seller was being way too nosey for his own good...

The Seller got an attitude because the buyer's offer was almost one million less than what he paid for the place... A few weeks after the seller refused my buyer's deal, the seller put the place on the auction block... The highest bid for it was about half of my buyer's offer, the Seller had to sell it for that price because he did not place a reserve amount on his auction contract...

Speaking of silly and stupid, educated and stubborn people...

Arghhhhhhhhhh....

Oh yes.. here is a sweet little deal I found for one of my Miami investors... A multi-use building on a "reborn" street in Miami... The property had 2- 1,100 Sq. Ft. 2 bed, 2 bath Apartments up... A Storefront downstairs in front, and a 1-1 downstairs... When renovated (approx. $30,000 to $40,000.00), the property would rent Section 8 @ the following 2 2-2 apts, $850.00 per month, 1 1-1 Apt $650.00 per month, and the storefront for approx $800.00 a month (probably a little more depending upon the type of business...)... Now I found it, put my Investor's offer in to the Seller for $48,000.00... The property was purchased and renovated in less than one month, he got it section eighted and flipped it for $175,000.00 by the end of the second month...

Whoopee..

<
The dilemma with flipping a property within the first year is, you end up paying taxes as ordinary income as opposed to capital gains.

I'm 6 mos away from being to flip one. The difference between capital gains and ordinary income would be $150K.

"Patience is a virtue, just not one of mine."

just bought a 3 br for $46,500 price included closing costs last month. spent $7k getting it very nice, appraised now for $90,000.

I decided to keep it for a while and actually move there myself for a year or 2.

[This message has been edited by Wes Murphree (edited 05-26-2004).]

Hey everybody...

Some good deals thus far... Come on folks let's hear some more... All of us love to talk about the good and the bad deals around us...So keep the string going...

Duane

I have heard the loophole to the capital gains tax is to take a line of credit out on your property. The settlement company on reports the profit. They take the mortgage balances and pay them off. Leave a little equity in to pay fees and take a line to cash out.

Am I wrong?

Ashburn VA Real Estate


Northern Virginia Real Estate

------------------
Michael C. Glass
REMAX Select Properties
Licensed to Practice Real Estate in Virginia
20 Pidgeon Hill Drive, Suite 201
Sterling, VA 20165
703-444-5900 (O)
703-723-2379 (D)
703-444-5921 (F)
http://www.moveupwithmike.com

Tell Me and I'll Forget
Show Me and I'll Remember
Involve Me and I'll Understand

Being able to Interpret and Manipulate Knowledge is Power!

Distress Seller in Foreclosure 12 days from Court Ordered Sale.

Property is a 3/2 built 1997 1400sqft
Mortgage pay off including Legal Fees and back payments $42,985

Repair cost Est at $3,800 for carpets and paint.

After Repair Value $72,500

Selling Lease Purchase
Purchase option payment $4,500 non-refundable
Purchase Price Set for 24 months out is $78,900
Lease is $625 / mo

Cash flow $625 x 24 = $15,000
Sale in 24 months $78,900
Option Received $4,500
Returns $98,400
less Purchase - $42,985
less Repairs - $3,800
less Closing Cost - $3,000
Total Return in 24 months $48,615

ROI = 102% (tax write offs off set taxes or more)

Hey Reality...

Great deal... Nice little $48,000 profit in a pretty short time...

Hey everybody.. let's keep this up... Some good deals are floating...

I've just finished the financing for a Hard Money commercial loan. A bad credit owner of a 100 room motel, owed 150K on a property that appraised for 4 million. Somehow he kept the 150K mortgage up to date, although he was unable to keep the motel open. He rented out the banquet rooms on a regular basis, but needed to renovate the guest rooms before reopening fully.

We did a $1.8 million stated income hard-money loan that allowed the owner to renovate the hotel, hire and train staff, and reopen for business with some operating capital available.

I was able to pay a $9K referral to the referring individual. Front start to finish this took us about 4 weeks.

------------------
W. Jeff Weatherspoon
Monarch Financial Services, Inc.
Commercial Lending Division
843-602-3322
843-497-9381 fax
monarchfinancial@sc.rr.com

[This message has been edited by jwxspoon (edited 06-01-2004).]

Hey Jeff...

Congrats on the deal... It sounds as if you are pretty creative... If you get a moment, please drop me an email as I have a few things that might need "creativity"... LOL...

Hey everybody, let's keep this creative financing post going... If we can get some more posts on it, we will start another one... This is a field of endeavor that alot of Agents shy away from because of their unfamiliarity with it... I fiind that it can be a very profitable method of finding, working, and doing deals... As both an agent working with clients and for myself...

Great going everybody...

Duane

"This is a field of endeavor that alot of Agents shy away from because of their unfamiliarity with it..."

Duane:

You hit this right on the nose. I'm new to the real estate industry and would love to get into bigger investments someday. I must admit reading these posts/deals that are going on excite, confuse and scare me all at the same time!

This, of course, due to my inexperience, which I hope to change in the next few years with training and visits to this site.

Keep up all the great posts!!!

Your time and experience is greatly appreciated.

Robyn
(a newbie)

Hey Robyn...
If you can, go to all the different real estate investor meetings in the area... Find another agent that works "creative" deals and ask them if you can "tag along" and read... Keep reading until you are blue in the face... and then Read some more... In this field of endeavor, knowledge is pure unadulterated power... The more you have the more power you can wield... Good Luck and please don't be afraid to ask questions... Just remember that the real estate industry is a living, breathing animal... It can rear up and bite as well as sit next to you and console you while you pet it's head...

Duane

My little niche is I only buy 2 br that were built as a 3 br, with a certain TSF. Return back to normal set up. Repeat as often as humanly possible. I recently bought latest one for $92k, return bedroom < 1k, time <1 month, new appraisal at $130k. Not alot of money, but such easy work.
Renter intends to buy soon, less than one year and I intend to roll into 1003 exchange to avoid capital tax. I will be exchanging up for a mixed use building in a college town a few counties over that is currently undervalued. Nothing flashy, just quietly building net worth for semi-retirement at 45. Yikes, that is only 10 years away, clock's a-ticking.